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H.S.ACHARYA (Project Logistics Advisor )     11 March 2020

Law of Limitation to file gratuity claim under NCLT

My past employer has not paid my gratuity dues payable to me for 12 years of service even after 5 years from the date of issue if relieving letter. Few reminders sent were also not replied and it seems they have no intention to pay. As per Labour Commissioner , there is no time limit to claim gratuity. Will NCLT admit such claims for gratuity dues stating reason as time barred case since law of Limitation under NCLT is only 3 years


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 4 Replies

Joy Bose   11 March 2020

Hello,
The employer is bound to pay the gratuity amount irrespective of the time period being lapsed.
You will not only get gratuity but you will be able to claim interest on that.

According to section 7(3A) of the payment of gratuity Act, If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify: Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.

In your case, you have from time to time reminded your employer to pay the gratuity amount but the employer did not comply.

In the case of
Karnail Singh
vs.
General Manager, Bishrampur Area of SECL, Surajpur & Ors.

it was decided that,
8% of simple interest will be charged after the lapse of 4 weeks and if the delay is of more than 4 weeks then 10% per annum.

Regards,
Joy Bose
1 Like

G.L.N. Prasad (Retired employee.)     12 March 2020

The query is on "limitation', as the claim was not rejected stating any ground, non-payment of gratuity is also a fraud, NCLT may in it's discretion may admit the case, and there is nothing wrong in approaching NCLT as a process after issuing a legal notice.

H.S.ACHARYA (Project Logistics Advisor )     13 March 2020

Thanks a lot for providing the useful information .

H.S.ACHARYA (Project Logistics Advisor )     13 March 2020

Dear Experts,
Employer also not paid Leave Emcashment and salary arrears as per final settlement papers signed by me and employer. Can this also be covered under NCLT since it is an admitted liability and there is no dispute over the claim amount ?

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